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The chaos theory of Mongolia

I returned to Mongolia 15 years ago after an absence of 13 years, save for the occasional 2-week leave from work, and that time I spent a semester and a half at a local university drinking endless cups of brown, watery 150 Tugrik instant MaCcoffee at the cafĂ© strangely, or perhaps egotistically, named "In my memory", writing the first and so far the only book that got us into trouble with the local intelligence who apparently had little else to do than to pore through the ramblings of teenagers to catch the tell-tale signs of drug dealery. But I digress. When you visit a country for a short period, be it home or not, you hardly have time to immerse yourself in the spirit of the country and the city and feel the nitty gritty and dirty shiny of it all. So after 13 years, it took me a while to readjust and finally understand what the hometown of my childhood had become.  The most striking, ubiquitous, and inescapable feature was and still, unfortunately, is the traffic. In 2008,...

Ivanhoe signs the Mongolia mining deal

After a couple of years of standstill, Ivanhoe has finally signed the agreement with the Mongolian government. Does it mean a good thing for the people of Mongolia? Perhaps. While many environmentalists are resentful over the last 5 years of boom in the mining sector, the government should be relieved, the duty of feeding the economy has been made a bit easier with the findings. Ivanhoe estimates that Mongolia will be one of the largest mining countries in a few years as further explorations are made.

Mongolia has the right to purchase up to 34 per cent of the Oyu Tolgoi project under a new mineral law passed last year. As well, the Asian country passed a "windfall profits" tax law last year that sees miners' shipments taxed at a rate of 68 per cent or higher when gold trades at $500 (U.S.) or more an ounce and when copper reaches $2,600 or more a ton.
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